Bank of China provides a $125 million USD loan for the 126 Nassau Street Project

Project narrative

In July 2020, financial close was reached on a deal in which the Bank of China (BOC) entered into a $125.0 million USD construction financing facility agreement with 126 Nassau Lessee LLC — a Delaware-incorporated special purpose vehicle and wholly-owned subsidiary of SL Green Realty Corp., a New York Stock Exchange-listed real estate investment trust focused on Manhattan and Manhattan's largest office landlord — for the 126 Nassau Street Project. The proceeds were to be used by the borrower to finance the construction of 126 Nassau Street, later known as 15 Beekman Street, a 213,084 square-foot, 27-story 338-foot mixed-use building located in Manhattan's Financial District at the corner of Nassau and Beekman streets (126-132 Nassau St.) for Pace University. The building included a new residence hall with suite-style housing, a modern dining facility, a state-of-the-art library and learning center, new classrooms, administrative and faculty offices, academic and common spaces, 18,300 square feet of lounge space, and the three-floor Seidenberg School of Computer Science and Information Systems as part of Pace's NYC Master Plan for its Lower Manhattan campus. SL Green acquired the 99-year ground lease of the buildings at 15 Beekman and 132 Nassau in March 2020 for $30 million USD from J. W. Realty Co., LLC. Then, in July 2020, SL Green signed a 30-year leasehold condominium with Pace University, as part of Pace's NYC Master Plan for its Lower Manhattan campus. In September 2020, SL Green Realty Corp. closed and announced an agreement with South Korean-based financial services conglomerate Meritz Alternative Investment Management to establish a joint venture for the 126 Nassau Street Project, with Meritz purchasing an 80% interest in the new joint venture and SL Green retaining a 20% interest and oversight of the development. The original 15 Beekman, known as the Vanderbilt Building, was constructed in 1893. As a historic and iconic building of Manhattan, its demolition for the new building was controversial; Pace faculty and students attempted to convince the Pace Board of Trustees to preserve the exterior, but were unsuccessful, with approval being issued in December 2019. In April 2020, SL Green obtained the permits to raze 15 Beekman and 132 Nassau, inviting controversy from locals about the speed that the permits were granted (especially given the mandatory lockdown of New York City because of the COVID-19 pandemic). In May 2020, Manhattan Community Board 1 in a resolution that passed 29-5 called on the Landmarks Preservation Commission to calendar (landmark) 15 Beekman, based on community support since 2002, to the opposition of SL Green and Pace representatives. The Fulton-Nassau Historic District Committee launched a change.org petition for the building's preservation with over 1,700 signatures. Nonetheless, the Landmarks Preservation Commission declined the request at preservation on the ground it was not an individual landmark, a decision that confused preservationists, especially as the original 15 Beekman was done by a very famous architectural firm. Between July 2020 and April 2021, SL Green spent $125,000 USD to solicit real estate permits and approvals, including lobbying to several officials directly. Ismael Leyva Architects served as the project designer and New Line Structures & Development served as general contractor. Construction was expected to begin in early 2021 and be completed by fall 2023. Construction was completed by September 28, 2023, with the building open for the fall semester.